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The Indian authorities introduced on Saturday (25 July 2026) that round 45% of India’s exports to the US are nonetheless exempt from the brand new 10% tariff imposed by the US authorities on imports.
The federal government additionally mentioned it continues to have interaction with the US on the quota-based system for India’s textile exports to the US.
On July 23, the Workplace of the U.S. Commerce Consultant (USTR) introduced the ultimate outcomes of an investigation into whether or not U.S. buying and selling companions are taking enough steps to forestall imports of merchandise made utilizing compelled labor. Because of this investigation, it was determined to impose 10% tariffs on 17 international locations together with India. 5 further international locations – the European Union, Taiwan, Japan, South Korea and Switzerland – will obtain decrease efficient tariff charges, whereas the remaining 38 international locations surveyed will obtain larger tariffs than India.
An announcement from the Ministry of Commerce and Business on Saturday (July 25, 2026) highlighted that the brand new 10% tariff is decrease than the 12.5% initially proposed for India and another international locations.
India’s efforts
“The Authorities of India continued to work intently with the USTR all through the investigation by means of detailed submissions and direct consultations, together with participation in public hearings,” it mentioned, including, “These continued efforts have resulted in India being positioned within the decrease tier of further tariffs below the ultimate motion, giving India a relative benefit in exports in key sectors.”
The ministry mentioned a “substantial portion” of India’s exports to the US, corresponding to generic medicine, smartphones and sure different merchandise, are presently topic to zero further duties and can proceed to be exempt from the ten% tariff.
Individually, the ten% tariff is not going to apply to merchandise already topic to U.S. measures below Part 232 of the U.S. Commerce Enlargement Act, corresponding to metal, aluminum, and auto elements.
He additional identified that the Part 232 tariffs imposed final 12 months ranged from 25% to 50% and had been imposed equally on virtually all international locations, so India wouldn’t be at a drawback on this regard.
“With these exemptions, an estimated 45% of India’s exports to the USA stay outdoors the ten% Part 301 further tariff,” the assertion mentioned.
“Cooperate with the USA”
The assertion acknowledged that the remaining 55% of India’s exports can be topic to an extra 10% responsibility, however added that India’s “tariff incidence is comparatively low in comparison with most different international locations below investigation.”
Because of this out of the 60 international locations surveyed, India’s tariffs are decrease than these of 38 different international locations.
In its report, the USTR additionally offered for the institution of a “textile mechanism” within the type of tariff quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia to encourage imports of U.S. cotton and textile merchandise into these international locations “to scale back dependence on inputs from different sources which can be extra more likely to embrace compelled labor inputs.”
Though India was not included on this mechanism, it mentioned it continues to cooperate with the US authorities on Indian textile exports.
The ministry pressured that the textile-specific mechanisms talked about within the last measure “haven’t but been established and should not operational.” “India will proceed to have interaction with the US on this challenge as a part of the continuing negotiations in the direction of the US-India Bilateral Commerce Settlement (BTA),” the ministry added.
The ministry mentioned the federal government “stays dedicated” to working with the US in the direction of an early conclusion of the India-US BTA.
